Webull (BULL) Misrepresented China Operations
$BULL investors filed a claim against Webull Corporation, its CEO, and its CFO for touting that its principal operations were U.S.-based and that U.S. customer data was secure, while failing to disclose that its workforce, technology infrastructure, ownership, and data systems were substantially tied to China.
After a U.S. House Select Committee investigation was reported by CNBC, Webull’s stock fell 19.1% on October 7, 2026, from $7.28 to $5.89 per share.
$BULL investors can join this case to be notified about potential recovery.
Case Details:
Webull operates a global digital investment and brokerage platform. It became publicly traded on Nasdaq on April 11, 2025, following its business combination with SK Growth Opportunities Corporation. Its Class A ordinary shares trade as $BULL and its redeemable warrants as $BULLW.
Webull represented that its principal operations were based in the United States and that its activities in mainland China were limited to research, development, and technical support. It also assured investors that U.S. customers’ personally identifiable information was stored on U.S. servers and could not be accessed by non-U.S. employees without permission and oversight from U.S. personnel.
In its 2024 Annual Report filed April 25, 2025, Webull said it did not believe it was subject to laws or regulations targeting companies with connections to China. It acknowledged inquiries from state attorneys general and the House Select Committee but characterized the allegations as largely outdated and inaccurate. It repeated similar statements in its July 18, 2025 registration statement and its April 9, 2026 Annual Report.
On October 7, 2026, CNBC reported findings from the U.S. House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party. The Committee reportedly found that Webull’s ownership, engineering workforce, technology infrastructure, cross-border data routing, financing, and compliance systems were structurally connected to China.
It also reportedly found that Webull’s mainland Chinese subsidiary employed approximately 863 people, or 62% of its global workforce, despite earlier claims that it had no offices or employees in China. Webull’s stock fell approximately 19% on unusually heavy trading volume.
Based on these events, $BULL investors filed a claim against Webull Corporation, alleging the Company:
Misrepresented its operational independence from China and portrayed its principal operations as primarily U.S.-based
Failed to disclose that its trading platform, software development, data pipelines, and engineering depended heavily on personnel and infrastructure in China
Misled investors about the security of U.S. customer data by understating the connections of its technology infrastructure to China
Investors argue that had the truth about Webull’s dependence on China and the related data security risks been disclosed, Webull’s securities would not have traded at artificially inflated prices during the Class Period.